10 Things You Need to Know Before Getting a Mortgage

How Much You Can Afford

When shopping for a home, you may see prices that blow your mind. Before you even begin looking at properties you should sit down and figure out just how much house you can afford. There are several online calculators that can help you, and most realtors or mortgage lenders will use your credit report and financial information to pre-qualify you for a certain amount.

The first thing you need to look at is how much you bring in each month and how much goes back out toward bills. You can leave your rent out of this budget because the mortgage payment will take its place. Subtract your expenses from your income and see what is left. This amount is all you can reasonably pay each month toward a mortgage.